SWIRE PACIFIC A(HK:00019)2019-09-02 08:31Financial Performance - The company's attributable profit for the first half of 2019 was HKD 7,939 million, a decrease of 41% compared to HKD 13,501 million in the same period of 2018[5]. - The recurring basic profit increased to HKD 4,226 million, representing a 40% increase from HKD 3,026 million year-on-year[5]. - Revenue for the first half of 2019 was HKD 42,870 million, a slight increase of 1% from HKD 42,265 million in the previous year[5]. - The attributable consolidated profit for the first half of 2019 is HKD 7.93 billion, a decrease of 41% compared to the same period in 2018, primarily due to withholding tax on dividends received from the US[9]. - The recurring basic profit attributable to shareholders for the first half of 2019 is HKD 15.84 billion, an increase from HKD 6.54 billion in 2018, reflecting significant gains from property sales[9]. - The company reported a profit of HKD 9,800 million for the six months ended June 30, 2019, compared to HKD 17,656 million for the same period in 2018[110]. - The total profit for the same period was HKD 16,317 million, compared to HKD 15,438 million in 2018, reflecting a growth of 5.7%[109]. - The net profit attributable to shareholders for the six months ended June 30, 2019, was HKD 7,939 million, down from HKD 13,501 million in 2018, indicating a decrease of 41.1%[109]. Cash Flow and Debt Management - The net cash inflow before financing was HKD 15,260 million, an increase of 89% compared to HKD 8,075 million in the same period last year[5]. - The net debt decreased by 28% to HKD 48,630 million from HKD 67,272 million year-on-year[5]. - The capital net debt ratio improved to 14.7%, down from 20.9% in the previous year, marking the lowest level since 2007[7]. - As of June 30, 2019, the net debt was HKD 48.6 billion, a decrease of 22% compared to the end of 2018, with a net debt to equity ratio of 14.7%, down 4.6 percentage points from the end of 2018[11]. - The total borrowings and bonds as of June 30, 2019, were HKD 69,597 million, down from HKD 71,779 million at the beginning of the year[92]. - The company recognized a significant non-recurring loss of HKD 11,937 million from the sale of investment property interests[89]. - The company paid dividends totaling HKD 3,589 million during the first half of 2019, compared to HKD 2,450 million in 2018[91]. - The total liabilities, including lease liabilities, amounted to HKD 97,930 million as of June 30, 2019[104]. Investment and Strategic Developments - The company completed the acquisition of low-cost airline Hong Kong Express in July 2019, supporting its strategic development[6]. - The company plans to continue core investment initiatives in Hong Kong and mainland China to seize new opportunities[7]. - The company is investing HKD 15 billion to redevelop Taikoo Place in Hong Kong, with the second phase expected to be completed in 2021 or 2022[9]. - The company completed the sale of its interests in three properties in Taikoo Shing and is also developing new residential projects in Singapore and Indonesia[9]. - The company announced the launch of its first residential project "EDEN" in Singapore, offering 20 residential units with a total floor area of approximately 77,000 square feet, expected to complete in Q4 2019[22]. - The company completed the acquisition of land in South Jakarta for a residential project expected to provide over 400 units, scheduled for completion in 2023[22]. Sector Performance - The real estate sector remains the largest source of profit, with recurring basic profit from this sector amounting to HKD 33.19 billion in the first half of 2019, up from HKD 30.58 billion in 2018[9]. - The aviation segment recorded a profit of HKD 1.347 billion in the first half of 2019, compared to a loss of HKD 263 million in the same period of 2018, indicating a positive turnaround[9]. - The trading and industrial segment recorded an attributable profit of HKD 60 million in the first half of 2019, compared to HKD 154 million in the same period of 2018, reflecting a decline[9]. - The hotel business recorded a profit of HKD 706 million in the first half of 2019, compared to a loss in the same period of 2018[22]. - The beverage segment reported revenue of HKD 21,169 million for the six months ended June 30, 2019, an increase of 3.1% compared to HKD 20,538 million in the same period of 2018[58]. Market Conditions and Challenges - The company continues to face challenges in the aviation environment due to geopolitical tensions and trade disputes, impacting overall revenue performance[9]. - Retail sales at Pacific Place shopping mall decreased by 4% due to reduced consumer spending from visitors, particularly from Mainland China[26]. - The real estate sector anticipates an increase in vacancy rates in Central Hong Kong, exerting downward pressure on office rents, while demand for office space in other regions remains strong[12]. - The hotel sector in Hong Kong is expected to maintain a stable operating environment, although occupancy rates may be affected by ongoing protests[13]. - Recent protests in Hong Kong have negatively impacted visitor numbers and seat bookings[45]. Corporate Governance and Shareholder Information - The company has complied with all relevant corporate governance codes during the reporting period, except for certain provisions deemed not beneficial to shareholders[176]. - The report emphasizes the importance of understanding the equity structure and shareholder rights as part of corporate governance considerations[182]. - The total issued and paid-up capital as of June 30, 2019, was HKD 1,294 million, consisting of 905,206,000 'A' shares and 2,981,870,000 'B' shares[166]. - Swire Group's overall equity interest in the company was 55.12%, with associated voting rights of 64.12%[185].